XML 28 R17.htm IDEA: XBRL DOCUMENT v3.10.0.1
COMMITMENTS AND CONTINGENCIES
6 Months Ended
Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES
Commitments
At June 30, 2018, we had estimated commitments of approximately: (i) $154.4 million to finish drilling, completing, or performing other work on wells and various other infrastructure projects in progress and (ii) $14.4 million to finish gathering system construction in progress.
At June 30, 2018, we had firm sales contracts to deliver approximately 330.7 Bcf of gas over the next 6.6 years. If we do not deliver this gas, our estimated financial commitment, calculated using the July 2018 index price, would be approximately $659.9 million. The value of this commitment will fluctuate due to price volatility and actual volumes delivered. However, we believe no financial commitment will be due based on our current proved reserves and production levels from which we can fulfill these volumetric obligations.
In connection with gas gathering and processing agreements, we have volume commitments over the next 9.5 years. If we do not deliver the committed gas or NGLs, as the case may be, the estimated maximum amount that would be payable under these commitments, calculated as of June 30, 2018, would be approximately $351.0 million. However, we believe no financial commitment will be due based on our current proved reserves and production levels from which we can fulfill these volumetric obligations.
We have minimum volume delivery commitments associated with agreements to reimburse connection costs to various pipelines. If we do not deliver this gas, the estimated maximum amount that would be payable under these commitments, calculated as of June 30, 2018, would be approximately $7.4 million. Of this total, we have accrued a liability of $2.5 million representing the estimated amount we will have to pay due to insufficient forecasted volumes at particular connection points.
At June 30, 2018, we have various firm transportation agreements for gas pipeline capacity with end dates ranging from 2018 - 2025 under which we will have to pay an estimated $26.6 million over the remaining terms of the agreements. These agreements were entered into to support our residue gas marketing efforts, and we believe we have sufficient reserves that will utilize this firm transportation.
At June 30, 2018, we have various future commitments under operating lease arrangements for commercial real estate, consisting primarily of office space, and compressor equipment. The commitments under the commercial real estate operating leases, which have lease terms expiring within the next 8.2 years, total approximately $80.9 million. The commitments under the compressor equipment operating leases, which have lease terms expiring within the next 2 - 24 months, total approximately $9.3 million.
All of the noted commitments were routine and made in the ordinary course of our business.
Litigation
We have various litigation matters related to the ordinary course of our business. We assess the probability of estimable amounts related to these matters in accordance with guidance established by the FASB and adjust our accruals accordingly. Though some of the related claims may be significant, we believe the resolution of them, individually or in the aggregate, would not have a material adverse effect on our financial condition or results of operations after consideration of current accruals.